Government What is its role in our economy

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GovernmentWhat is its role in our economy?

• Whos the largest employer in the United States?
• The government, yeah thats who!
• The government at all three levels
• federal
• state
• and local
• supplies more jobs than any other business in the
  U.S.
• but, what else does it do for us?

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A. Provides Public Facilities and Services

• The government does many things for you and me.
  Here are some examples of what is provided
• police and fire protection
• public transportation
• highways
• bridges
• some hospitals
• National Defense (federal only)
• education
• some health care (VA) Wow!!

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B. Regulating Economic Activity

• The government is responsible for watching over
  our economy
• There must be competition
• Supervise Working Conditions
• 1963 (Equal Pay Act)
• Protect Consumers
• investigate fraud
• Protection of the Environment
• EPA (1970)

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C. Make Sure the Economy is Stable

• Obviously, it is very important for our country
  to have a stable and healthy economy. It makes
  sure this takes place. Two problems are always a
  concern
• 1. Unemploymentwhen people are
• willing and able to work but
• cant find jobs.
• 2. Inflationan increase in the
• average level of prices in the
• whole economy.

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D. Provide for the Public Well-Being

• Our government is responsible for providing for
  our welfare or well-being. In other words, to
  make sure we are okay!
• It provides programs like
• Social Security
• Welfare (economic assistance)
• Medicare
• Workers Compensation (if you get hurt)
• These are benefits for people who really need
  them.
• Okay, but how does the government pay for all
  this stuff???

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• Government pays for all these services through
  your tax dollars!
• The different kinds of taxes are
• INCOME TAX
• CORPORATE TAX
• EXCISE TAX
• TARIFFS

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Income Tax

• The money you owe the government from your
  paycheck!!
• ½ of the governments tax income is from this.
• A Direct Taxtaken directly from
• your earnings
• Can be a Progressive Taxmore from
• people who make more
• Can be Regressiveex. In the past Social Security
• has taken more from poorer!

Uncle Sam
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Corporate Tax

• Corporations are obligated to pay a certain
  percentage of their profits to the Federal
  Government.

Uncle Sam
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Excise Tax

• These are taxes on items that are bought not
  earned. Sales tax is an example.
• These are indirect taxes. They dont come
  directly from money you earned. Sometimes you
  dont even know they are there like with gasoline
  purchases.

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Tariffs

• The Federal Government also taxes goods imported
  into this country.
• The consumer ends up paying the tax in the end
  with higher prices.

Lamborghini Diablo nice.